When the market is going up day after day, some investors may get buying fever because they think the market could continue in an upwards momentum. But once the market enters a downward spiral, some investors can’t take it anymore and want to get off the ride. However, nobody knows when the stock market is about to crash.
At Retirement Planners of America, we have an algorithm with our Invest and Protect Strategy that determines when we exit the stock market. We buy investments, hold them when the market trends upward and sell them when the market is dropping. Not only does our algorithm tell us when to sell, but it also alerts us when we should get our clients back into the market. The Invest and Protect Strategy also helps during a bear market. Bear markets can be a huge risk to financial security and could happen more than once during your golden years.
Regardless of what investment strategy someone follows, we believe they should enter periods of market volatility with a plan, and that they should not exit the market without knowing when they’ll get back in. We believe it’s critical to have a plan for when to get back into the market.
It can be common for young investors to follow a buy-and-hold strategy and ride out market volatility. This strategy can work when an investor is young and still has decades to recover from big losses. But for people who are near or in retirement, they may not have the time to wait for the market to rebound.
At the end of the day, we understand how hard our clients have worked to build their wealth. It’s our top priority to give them financial peace of mind and we want their money last if they do. That’s why we stand by our Invest and Protect Strategy because it is designed to help our clients protect the retirement savings that they’ve worked so hard to build.
Does the current market environment have you wondering if your seatbelt is enough to help protect you and which way the rollercoaster will go next? If so, schedule a meeting with one of our advisors to see how market volatility could affect your retirement savings and learn how our strategy could help protect you from a bear market.